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Saudi retail developer Arabian Centres Company (Cenomi Centres) and investment firm GIB Capital (GIBC) have launched a Shariah-compliant real estate investment fund with an initial capital of 1 billion riyals ($266 million) with the aim to develop and market lands in the kingdom for residential, offices and leisure purposes.
The close-ended fund will facilitate the Qassim land sale programme, a province northwest of Riyadh, along with develop the U Walk Qassim mall in Buraidah, Saudi Arabia, Cenomi Centers said in a Tadawul disclosure.
The fund could also sign partnership agreements with real estate developers for the purpose of developing lands within the masterplan, the company added.
The land sale is part of Cenomi Centers’ SAR 2 billion non-core assets sale programme, initiated in 2022 to strengthen the company’s financial position and fund its growth pipeline.
Approximately SAR 400 million is estimated to complete the U Walk Qassim mall development. The projected annual revenue from the mall, once stabilised, is around SAR 80 million, the company said.
GIBC, the investment arm of Gulf International Bank (GIB), will assume the role of fund manager to facilitate the sale of the Qassim land and assist in securing the funds required for the U Walk Qassim development, subject to approval from the Capital Market Authority.
Cenomi Centers will be the sole unit holder of the fund and will contribute with assets in-kind, along with any hard and soft costs incurred to date.
Construction of the mall is anticipated to resume in December 2024 and complete in Q4 2026.
(Writing by Bindu Rai, editing by Daniel Luiz)
